Buying a HUD home for parents

kabirNovember 24, 2009

My parents are retired with min income. Can me and my brother buy a hud home as owner/occupant for them? Both of us currently own homes. We plan on putting 30% down. The house and loan will be in our name(me and my brother).

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phillipeh

I think you can buy anything you want, unless there are restrictions because it's a HUD home. Otherwise, it would probably be like owning a second home, and you won't get any of the tax benefits such as writing off the interest or claiming homestead exemption.

    Bookmark   November 24, 2009 at 10:01AM
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eldemila

I just bid on a hud home 2 weeks ago, so not that I'm an expert, I can tell you the little that I know (one is that I didn't get the house!)

In the HUD listing it will tell you if the bidding is open to Owner Occupied bidders or Investors. For me, it was owner occupied. You have to give your ss# to put in a bid. I was outbid, house went for more than the asking price - was a great deal - it was a learning experience for me.

If there are no bids accepted from a owner, then they will open it up to all bidders, owners AND investors.

The bid that is accepted is the one that nets the Gov. the most money.

One thing I learned is they use their own lawyers, so you save on closing costs and they will pay up to $3 of your closing costs (at least this was true in the state I was bidding in, not sure if it's the norm nationwide)

I would say your parents would have to put in the offer to get in an owner occupied, unless you live with them. But you could bid on one for them and buy it as an investor, but as the other posted wrote, you won't be able to have the tax benefits.

Go to the HUD site, there's a lot of information there. Just make sure, if you find a home you/your parents like, and it's a good deal, bid ABOVE the asking price, something I should have done. Oh, and do get an inspector and read the report the HUD inspector wrote, it's there for you to see.

GOOD LUCK!

Please make sure you look in to this and not take what I've written to heart, it's just my experience and what I experienced recently.

    Bookmark   November 24, 2009 at 4:18PM
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brickeyee

You will be treated as investor since you are not planning to occupy the home.

This means more money down, and exclusion from many of the lower interest loans.

    Bookmark   November 27, 2009 at 10:14AM
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mariend

Why a home for them? Have you looked at assisted living places? They take a person's income and match the housing. Here seniors can get either apts or 2-3 bedrooms in a serious of senior places, again based on income. That way any money you spend on a house, could be put aside for medical emergencies or? How old are the parents and what health problems if any? Do they really want a house and can they take care of it. If they are in their 60's + I see many other opportunties. and yes we are in our 70's and because of health issues, we have to depend on son and wife. Later when it gets so I cannot do as much as I can now. we will make the move. It is not fair to the children, no matter what they say.

    Bookmark   December 5, 2009 at 3:05PM
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